Talking Point  

Investing in corporate bonds

  • Explain why corporate bonds are popular with investors
  • Describe how corporate bonds work as an asset class
  • Identify some of the risks involved in investing in corporate bonds
CPD
Approx.30min
Corporate bonds in volatile markets
How to make the most of fixed income
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Corporate bonds are a useful diversifier when building a portfolio, as typically they respond differently to equities in  the same economic environment.

But they are now behaving a bit differently, and the yields have been low for some time.

Opinions is divided about whether they offer a good investment right now or not: much of this depends on one's perspective on the future. 

Are you an optimist or pessimist?

Here we set out some guidelines about investing for the future in the corporate bond sector.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Which of the following is NOT a reason that bond investing is popular right now?

  2. Corporate bonds are completely risk-free, true or false?

  3. What is the appeal of investment grade corporate bonds?

  4. Shorter-dated corporate bonds have done much better than longer dated bonds, true or false?

  5. What is the consequence of corporate bods behaving like equities?

  6. What should bond fund managers do to mitigate the consequences of the liquidity crisis?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Explain why corporate bonds are popular with investors
  • Describe how corporate bonds work as an asset class
  • Identify some of the risks involved in investing in corporate bonds

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